INTERNATIONAL PUBLIC PARTNERSHIPS

Investment Process

The process begins with investment adviser Amber identifying, developing, and originating investment opportunities that fit the funds risk and return profile. They search for investments which will enhance the existing portfolio, with long-term predictable cash flows and/or the opportunity for higher capital growth. They also seek investments which are positive from a sustainable development perspective, aided by the setting up of a new ESG committee in 2021. A typical investment has predictable yields; solid creditworthy counterparties; project-related risks (including construction and operation) transferred to subcontractors; and a debt term matched to the concession length, mitigating refinancing risk. The team also seek strong majority ownership, ensuring control over asset operations and creating opportunities to enhance income by active management such as client variations, third party income, refinancing and portfolio synergies. Most of the fund’s new investments are sourced off-market through existing relationships with the public sector and other infrastructure providers. The acquisitions are funded via a £400million corporate debt facility, which is periodically repaid through equity fundraising. The portfolio consists of over 130 projects mainly in the UK, but also Europe, North America, and Australia. Its biggest sector exposure is to Energy Transmission, followed by Transport and Education. This includes electricity transmission, gas distribution and railways to schools, health facilities and military housing projects. Most investments have an life of under 20 years, but the weighted average investment life of the portfolio is 32 years.